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Originally Posted by CliffFletcher
That sounds an awful lot like trickle-down economics. Isn't that the justification for cutting taxes for high-earners - they'll spend that money on home renos, restaurants, etc, and that's good for everybody?
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It's good for the home reno contractors and the people who work at / own the restaurants. That's probably good for everybody.
Trickle down economics is predicated on the notion that if you focus economic relief, aka tax cuts, on the people who create wealth by starting or funding businesses (which has usually just been interpreted as "rich people") they'll do more of that, which is good for the economy.
This is just a relief package slash stimulus, which is predicated on the idea that if you give everyone some money, they'll spend it. You hope they spend as much as possible on the right things, like local businesses, because that's good for the economy. It's kind of the opposite of trickle down economics, the cash injection comes from the bottom up.